Joined: 18 Feb 2010
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Posted: 11 Apr 2010 at 16:14 | IP Logged
During remeasurement (F2-55, Becker 2009), amortization of bonds is recorded in I/S using historical rate. But as we know that bonds are monetary assets, so on BS, they should be booked using current rate. For me, it's so conflicting that bonds are booked at current rate on BS, while their amortization is recorded in I/S using historical rate.
Joined: 18 Aug 2009 Location: United States
Online Status: Offline Posts: 587
Posted: 12 Apr 2010 at 16:24 | IP Logged
In my opinion, it is just the rule we gotta memorize...in translation method( current method)...all I/S items we use weight avg rate.
And what is the difference between translation and remeasurement method regarding I/S items...in remeasurement method, all I/S items we use weight avg rate except- Depreciation Exp, Cost of Goods Sold and amortization exp.
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Topic: Bonds in remeasurement
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